CHP technology works by using a fuel source, typically natural gas, to generate electricity which can be either utilised by the client via a private wire, sold back to the grid, or a combination of the two. Embracing CHP technology poses a range of benefits:

Benefits of Combined Heat and Power

Financial

Typically lower in price than traditional importation from the grid

Utilises one fuel source to generate two energy outputs (electricity and heat), therefore creating two outputs for the cost of one fuel input

Further savings found through the generation of electricity at the price of a single fuel import which is typically lower than the cost of importing electricity separately

There is the option to sell the electricity back to the grid, allowing for further financial reward simply by generating a heating supply

A 2017 study by BEIS found that UK customers connected to heat networks, on average, pay less for their heating than traditional generation: https://bit.ly/2DMfvIj

Fuel supplied to the CHP engine and the energy generated from it could be exempt from the main rates of the Climate Change Levy dependent on the efficiency of the installation